A.M. Best Assigns Issue Credit Ratings to Aflac Incorporated's Senior Unsecured Notes

A.M. Best has assigned Long-Term Issue Credit Ratings of "a-" to the new yen-denominated senior unsecured notes of Aflac Incorporated (Aflac) (Columbus, GA) AFL, which total JPY 53.4 billion. The offering consists of JPY 29.3 billion of 1.159% senior unsecured notes due 2030; JPY 15.2 billion of 1.488% senior unsecured notes due 2033; and JPY 8.9 billion of 1.750% senior unsecured notes due 2038. The outlook assigned to these Credit Ratings (rating) is stable. Aflac's existing Long-Term Issuer Credit Ratings remain unchanged.

Aflac anticipates the proceeds from the sale of the notes to be utilized for general corporate purposes. Aflac's capitalization and liquidity provide financial flexibility and support for the overall enterprise. Aflac's financial leverage, which was approximately 20% at June 30, 2018, will increase modestly to approximately 22% with the new issuance. Additionally, Aflac's interest coverage is expected to remain near 20 times.

Aflac's insurance subsidiaries offer a diverse portfolio of supplemental health products in the United States and Japan, which generate strong earnings and steady cash flows to the holding company. Aflac is the leader in voluntary worksite insurance sales in the United States, and in Japan, the company is the leading provider of medical and cancer insurance. Aflac insurance products provide coverage to more than 50 million people worldwide.

This press release relates to Credit Ratings that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating Action Press Releases.

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